Oil prices dropping

[Lewis]

OIl prices are tanking today. WTI sank as much as 94% , at 1$ a barrel at one point

 

https://www.cnbc.com/amp/2020/04/20/coronavirus-us-oil-prices-collapse-as-storage-runs-out.html

https://www.marketwatch.com/story/these-us-oil-companies-are-most-at-risk-in-the-danger-zone-2020-04-20

 

https://oilprice.com

 

 

 

Edited April 20, 2020 by Lewis

[My little flower]

US oil prices crash below $0 a barrel. Global stocks are mixed
By Clare Duffy and Laura He, CNN Business
Apr 20, 2020
New York/Hong Kong  (CNN Business) - US oil prices crashed Monday to a record low as the market continues to be roiled by an epic collapse in demand caused by the coronavirus pandemic. Global stocks are mixed as investors brace for more companies to reveal how much the crisis is costing them. 
US oil futures were down below $0 a barrel, their worst level since NYMEX opened oil futures trading in 1983. Monday's plunge comes after prices hit an 18-year low last week as markets realized that record output cuts agreed by OPEC, Russia and other producers aren't nearly enough to offset the loss in demand. 
"It hasn't taken long for the market to recognize that the OPEC+ deal will not, in its present form, be enough to balance oil markets," wrote Stephen Innes, chief global markets strategist at AxiCorp, in a research note. 
The May futures contract for West Texas International is about to expire, and frantic last minute trading is compounding concerns about how much oil the United States will be able to store as demand dries up, according to Bjornar Tonhaugen, head of oil markets at Rystad Energy. He said that is leading to these "large price swings."
US oil futures for June fell more than 12% to $21.87.  Brent, the global benchmark, slumped 3.9% to just below $27 a barrel.
Meanwhile, London's FTSE 100 and Germany's DAX opened narrowly higher, but France's CAC 40 was slightly negative.
Europe's tepid open followed an uneasy day in Asia, where Japan's Nikkei 225 closed down nearly 1.2% as the country reported that exports fell sharply last month while the coronavirus weighed on economic activity. South Korea's Kospi ended 0.8% lower after struggling for direction much of the day.
Hong Kong's Hang Seng Index ended down 0.2%, while China's Shanghai Composite closed 0.5% higher. The People's Bank of China on Monday cut its one-year Loan Prime Rate by 20 basis points to 3.85%. The cut to the rate was widely expected after the central bank cut another key lending rate last week.
Dow futures, meanwhile, were last down 235 points, or around 1%. S&P 500 futures dropped 0.9% and Nasdaq futures fell 0.6%. 
Last week, Wall Street logged its second-straight week of gains. Investors appeared optimistic about a potential coronavirus treatment and discussions about reopening parts of the US economy. The surge came despite a dire GDP report from China and news that 22 million Americans have filed initial unemployment claims in the past four weeks. 
The coming week will bring further information on how major US corporations have been affected by the coronavirus pandemic, as companies including Netflix, Delta Air Lines and Chipotle report earnings for the first three months of 2020. 
But it could also bring needed relief for the country's smaller businesses. Treasury Secretary Steven Mnuchin told CNN's Jake Tapper that an an agreement with Democratic congressional leaders could be reached Sunday to provide billions of dollars more to small businesses through the Paycheck Protection Program. 
 

[Dustparticle]

So, I am assuming that they toss the oil barrels into the streets before tossing the silver and gold.

 

[Lewis]

Nose diving. May’s contract is in the negative range

 

 

 

[Tortuga]

The oil refinery that I use to work at is standing down and stopping all production. 

[Julie]

43 minutes ago, Dustparticle said:

So, I am assuming that they toss the oil barrels into the streets before tossing the silver and gold.

 

There's no where to store the crude oil because it's not being refined & used just now. Trump will not be happy with the oil industry crashing as well.

[My little flower]

In a $20 oil environment, hundreds of US oil exploration and production companies will file for bankruptcy by the end of 2021, according to Rystad Energy

https://edition.cnn.com/2020/04/20/business/oil-price-crash-bankruptcy/index.html?utm_medium=social&utm_content=2020-04-20T20%3A02%3A04&utm_term=link&utm_source=fbbusiness

Edited April 20, 2020 by My little flower

[pnutts]

1 hour ago, Dustparticle said:

So, I am assuming that they toss the oil barrels into the streets before tossing the silver and gold.

Canada west heavy crude in negative territory, meaning they pay people to take it. 

Yet they expect taxpayers to bail them out.

Shut down - better than paying to have it hauled away and probably dumped since storage is full.

 

In spite of this gas prices have gone up some at 85 cents a liter while others are 65 cents a liter in the area.

Diesel never dropped much - truckers need that to deliver goods.

[Julie]

1 hour ago, Dustparticle said:

So, I am assuming that they toss the oil barrels into the streets before tossing the silver and gold.

 

I've seen people refer to oil as black gold. 🤔

[BLEmom]

Yeah funny how the price we pay at the stations hasn’t been going down...

[Dustparticle]

12 minutes ago, BLEmom said:

Yeah funny how the price we pay at the stations hasn’t been going down...

Stations need to pay bills and their employees too. 
 

[New World Explorer]

28 minutes ago, BLEmom said:

Yeah funny how the price we pay at the stations hasn’t been going down...

Before the crash, it was normal to pay $A1.4, 1.6 per litre, yesterday I filled the tank for $99c 

Very big difference. (Talking about Melbourne here) 

[BLEmom]

1 hour ago, Dustparticle said:

Stations need to pay bills and their employees too. 
 

I don’t believe the gas prices are about the local worker though. It’s amazing how fast prices will increase with even a hint of a possible deficit.  In contrast I’m commenting about how slow the prices come down even when the stock prices crash. 

[➕👇 ꓤꓱꓷꓠꓵ🎵Tone]

Before the crash, it was normal to pay $A1.4, 1.6 per litre, yesterday I filled the tank for $99c 
Very big difference. (Talking about Melbourne here) 

AUD $1.50 about a month (or so) ago.
Now $0.87¢ /Lit
Tropical Queensland. Tourist spot. No tourists, and plenty of fuel, and minimal local car use...

Old (Downunder) Tone

[Qapla]

Gas price at the pump has gone down quite a bit in many areas of the US

[Jeanie]

1. Gas in Kentucky was 1.00 a gallon today.  I was able to use my Kroger points and only paid 45 cents a gallon!

[BLEmom]

That’s amazing!  My side of town the prices have hardly changed. On the other side where we have a Costco, it’s .40 cheaper. In my mind, it should be going down a lot more in our area too. But I’m sure I don’t have the ability to understand their wily ways. Lol

[New World Explorer]

9 hours ago, Maʹher-shalʹal-hash-baz said:

AUD $1.50 about a month (or so) ago.
Now $0.87¢ /Lit
Tropical Queensland. Tourist spot. No tourists, and plenty of fuel, and minimal local car use...

Old (Downunder) Tone
 

Yep, saw one for $0.88c/Lit in Melbourne today. 

[Doug]

17 hours ago, BLEmom said:

I don’t believe the gas prices are about the local worker though. It’s amazing how fast prices will increase with even a hint of a possible deficit.  In contrast I’m commenting about how slow the prices come down even when the stock prices crash. 

This is how it goes.  Prices take off like a scalded cat , then float down like a feather over a thermal draft , never quite going all the way back to where they were before.

[Tortuga]

17 hours ago, BLEmom said:

I don’t believe the gas prices are about the local worker though. It’s amazing how fast prices will increase with even a hint of a possible deficit.  In contrast I’m commenting about how slow the prices come down even when the stock prices crash. 

Part of that is because the inventory cost the higher rate, so the companies are trying not to sell it at a loss. It's also a supply and demand issue. They will keep it at the higher price as long as people will pay the higher price. 

[NW2020]

16 hours ago, Jeanie said:

1. Gas in Kentucky was 1.00 a gallon today.  I was able to use my Kroger points and only paid 45 cents a gallon!

 

Wow!!  That is the price per GALLON! … I realize that is an American dollar … but WOW!

[Dages]

Meanwhile, the closest station here has 1.229 €/liter... well well... 

[Lewis]

Saw 79.9 /L today out where I was, diesel still at 1.09 or so.

[LeslieDean]

99cents US currency here in Oklahoma, USA once considered oil capital of the world. 

[Julie]

It's Oil Armageddon!